August 10, 2022 (The Assay) - Ausgold Limited (ASX: AUC) has received material new drilling results further demonstrate the potential scale opportunity at the company’s 100%-owned 2.16Moz Katanning Gold Project (KGP) in Western Australia.
The drilling successes follow release of the recent Pre-feasibility Study (PFS) which demonstrated strong economics for the KGP.
New drilling at the KGP has been designed to add to the near-surface Resource and further expand the scale of the current Ore Reserve. Reverse circulation (RC) drilling (41 holes for 5,666 metres) has targeted gold mineralisation within the KGP intercepting several significant zones of gold mineralisation both at depth and near-surface.
Highlights
• High-grade extensions to the Jinkas lode have identified further potential beneath the current optimised pits, with drill results including:
4m @ 17.05 g/t Au from 207m including 2m @ 33.86 g/t Au from 208m in BSRC1535
7m @ 6.99g/t Au from 133m including 2m @ 23.30g/t Au from 133m in BSRC1537
6m @ 4.00g/t Au from 252m including 4m @ 5.88g/t Au from 252m in BSRC1530
3m @ 7.01g/t Au from 168m including 1m @ 19.49g/t Au from 170m in BSRC1531
10m @ 1.69g/t Au from 108m in BSRC1488
4m @ 3.60g/t Au from 286m in BSRC1537
7m @ 1.93g/t Au from 133m in BSRC1531 – 5m @ 2.08g/t Au from 274m BSRC1530
• Further near-surface mineralisation has been intercepted which will extend beyond current Resource adding high grade mineralisation within the Central Zone within multiple zones of gold mineralisation intercepted:
8m @ 2.04g/t Au from 8m including 5m @ 2.96g/t Au from 10m in BSRC1473 (Jackson)
5m @ 2.98g/t Au from 31m including 2m @ 6.82g/t Au from 34m in BSRC1476 (Jackson)
8m @ 1.83g/t Au from 31m including 2m @ 6.26g/t Au from 37m in BSRC1531 (Jinkas)
5m @ 2.59g/t Au from 36m including 3m @ 3.80g/t Au from 38m in BSRC1473 (Jackson)
8m @ 1.50g/t Au from 92m including 2m @ 4.33g/t Au from 96m in BSRC1521 (White Dam)
Jinkas Deeps Results from RC drilling (8 holes for 2,040m) aimed at extending the high-grade Jinkas gold mineralisation at depth beyond the current Resource extends and test the potential beneath the currently designed open pits. High-grade gold mineralisation intersected in the drilling demonstrates further untested potential at depth within the KPG.
Drilling was designed to test conceptual targets which are supported with Down Hole Electromagnetics (DHEM) targets which highlight zones of semi-massive pyrrhotite alteration. This alteration is often coincident with higher gold grades and has been used to map fold hinge zones where these sulphides are concentrated.
BSRC1530 and BSRC1537 were drilled to target this hinge position of the folded Jinkas lode. BSRC1530 returned 6m @ 4.00g/t Au from 252m including 4m @ 5.88g/t Au from 252m and 5m @ 2.08g/t Au from 274m. BSRC1537 returned 7m @ 6.99g/t Au from 133m, including 2m @ 23.30g/t Au from 133m and 4m @ 3.60g/t Au from 286m.
Crucially, this hinge position remains poorly tested along strike and further down plunge. BSRC1535 was drilled to test for high-grade mineralisation at depth in the White Dam lode and returned 4m @ 17.05 g/t Au from 207m, including 2m @ 33.86 g/t Au from 208m. These high-grade results are especially significant as they unlock potential to expand the Resource as both an open cut and as a potential underground Resource.
“Ausgold is clearly demonstrating the potential of the Katanning Gold Project with the recent PFS delivering a large 1.28 Moz Ore Reserve and these high-grade results from new drilling,” Managing Director, Matthew Greentree, said.
“It is pleasing to continue this momentum with near surface high-grade gold intersected as well as expanding the depth potential which remains open. Both add to the significant multi-million-ounce Resource potential of the project. The KGP is now shaping up to be one of the largest free-milling undeveloped gold projects in Western Australia.”
For further information please visit: https://ausgoldlimited.com/